---
kind: "section"
citation: "42 U.S.C. § 1591a"
title: "42"
title_heading: "The Public Health and Welfare"
number: "1591a"
heading: "Construction by private enterprise"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/42/1591a"
units:
  - "Chapter 9 — Housing of Persons Engaged in National Defense"
  - "Subchapter VIII — Critical Defense Housing Areas"
---

# §1591a. Construction by private enterprise


In order to assure that private enterprise shall be afforded full opportunity to provide the defense [housing](/usc/42/1590.md?p=b) needed wherever possible, in any area which the President, pursuant to the authority contained in [section 1591 of this title](/usc/42/1591.md), has declared to be a critical defense [housing](/usc/42/1590.md?p=b) area—

- (a) **Publication of number of units needed—** first, the number of permanent dwelling units (including information as to types, rentals, and general locations) needed for defense workers and military personnel in such critical defense [housing](/usc/42/1590.md?p=b) area shall be publicly announced and printed in the Federal Register by the [Secretary](/usc/42/242q–4.md?p=2) of [Housing](/usc/42/1590.md?p=b) and Urban Development;
- (b) **Suspension of credit restrictions—** second, residential credit restrictions under the Defense Production Act of 1950, as amended [[50 U.S.C. 4501](/usc/50/4501.md) et seq.], (1) as to [housing](/usc/42/1590.md?p=b) to be sold at $12,000 or less per unit or to be rented at $85 or less per unit per month, shall be suspended with respect to the number and types of [housing](/usc/42/1590.md?p=b) units at the sales prices or rentals which the President determines to be needed in such area for defense workers or military personnel, and (2) as to all other [housing](/usc/42/1590.md?p=b), shall be relaxed in such manner and to such extent as the President determines to be necessary and appropriate to obtain the production of such [housing](/usc/42/1590.md?p=b) needed in such area for defense workers or military personnel;
- (c) **Mortgage insurance—** third, the mortgage insurance aids provided under title II of this Act shall be made available to obtain the production of [housing](/usc/42/1590.md?p=b) needed in such area for defense workers or military personnel; and
- (d) **Construction by Government as conditional—** fourth, no permanent [housing](/usc/42/1590.md?p=b) shall be constructed by the Federal Government under the provisions of subchapter IX of this chapter except to the extent that private builders or eligible mortgagees have not, within a period of not less than ninety days (as the [Secretary](/usc/42/242q–4.md?p=2) of [Housing](/usc/42/1590.md?p=b) and Urban Development shall specify) following public announcement of the availability of such mortgage insurance aids under title II of this Act, indicated through bona fide applications (which meet the requirements as to types, rentals, or sales prices, and general locations) for exceptions from such residential credit restrictions or for mortgage insurance or guaranty that they will provide the [housing](/usc/42/1590.md?p=b) determined to be needed in such area for defense workers and military personnel and publicly announced as provided by [subsection (a)](#a) of this section.

## Source credit

(Sept. 1, 1951, ch. 378, title I, § 102, 65 Stat. 294; Pub. L. 89–174, § 5(a), Sept. 9, 1965, 79 Stat. 669.)

## Notes

### Editorial Notes

### References in Text

The Defense Production Act of 1950, referred to in subsec. (b), is act Sept. 8, 1950, ch. 932, 64 Stat. 798, which is classified to chapter 55 (§ 4501 et seq.) of Title 50, War and National Defense. For complete classification of this Act to the Code, see Tables.

This Act, referred to in subsecs. (c) and (d), means act Sept. 1, 1951, ch. 378, 65 Stat. 293, known as the Defense Housing and Community Facilities and Services Act of 1951. Title II of this Act enacted subchapter X (§ 1750 et seq.) of chapter 13 of Title 12, Banks and Banking, and amended sections 371, 1430, 1702, 1706, 1715c, 1715f, 1716, and 1743 of Title 12. For complete classification of this Act to the Code, see Short Title of 1951 Amendment note set out under section 1501 of this title and Tables.

### Statutory Notes and Related Subsidiaries

### Transfer of Functions

For transfer of functions to Secretary of Housing and Urban Development, see note set out under section 1581 of this title.